FCA to launch asset management Mifid probe

The UK financial regulator is to begin a review of the EU rules that changed how asset managers pay for the research they use to make investment decisions. The Financial Conduct Authority, the City regulator, is concerned about inconsistencies in the interpretation and application of the Mifid II regulations, which came into force in January.
Mifid II requires asset managers to separate the cost of research from transaction charges and trading commissions, a process known as unbundling. The move was intended to improve investor protection by ensuring that asset managers’ decisions could not be influenced by receiving research free.